Study: Broadband Skyrockets in Cable Homes

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Seattle -- Broadband household penetration has more than trebled since 2001,
according to the latest CTAM Pulse research.

Findings from the Cable & Telecommunications Association for Marketing’s
"Consumer Profiles: A Moment in Time" indicated that household penetration of
broadband has jumped to 16% this year from 5% in 2001.

Among broadband users, cable modems remain far and away the connective
choice, as 63% of survey respondents use the device -- a ratio consistent with
the previous two years’ results.

Penetration of online users seems to have crested, according to Pulse. Cable
homes with online services decreased to 57% from 58% in 2002 after jumping from
51% in 2001. In satellite homes, online services declined to 56% from 64% a year
ago, following a move from 52% in 2001.

Elsewhere, the survey revealed that digital cable is becoming increasingly
popular. Penetration rose to 19% this year from 12% in 2001. Among cable
households, 29% currently have digital services.

All told, 66% of all U.S. households receive their programming via cable,
versus 20% for direct-broadcast satellite providers.

From a demographic perspective, the profile of cable customers largely
approximates the total adult population.

But digital-cable customers tend to be younger (average 40 versus 45 for the
total population), are more likely to have kids at home (53% versus 39%) and
have higher household incomes ($55,000 versus $50,000).

The CTAM study posited that broadband users are even more attractive from
various demographic measures: married (70% versus 56%); education (39% are
college graduates compared with 23% for the general populace); and affluence
($69,000 average household income versus $50,000).

The research was based on a telephone survey conducted by Communications,
Entertainment and Technology Research and Information Service as part of CTAM’s
Access survey May 21-30. The sample base represented 1,018 randomly selected
consumers 18 and older.

All data are weighted to reflect the U.S. population of people 18+ (66% cable
customers, 20% DBS subscribers, 54% online users and 17% without any
multichannel service).

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